Here's Why Align Technology (ALGN) is a Strong Momentum Stock

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - The Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight attractive investment opportunities [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score assists investors in capitalizing on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify optimal entry points [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum, helping investors narrow down their choices [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 (Hold) rank should also have high Style Scores to ensure potential upside [9] Example Stock: Align Technology (ALGN) - Align Technology specializes in clear aligner therapy and related digital services in dentistry, with a current Zacks Rank of 3 (Hold) and a VGM Score of B [11] - ALGN has a Momentum Style Score of B, with shares increasing by 5.9% over the past four weeks, and five analysts have raised their earnings estimates for fiscal 2025 [12] - Given its solid Zacks Rank and favorable Style Scores, ALGN is recommended for investors' consideration [13]